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IFAs urge life office changes to GPP admin

Pressure is mounting on life offices to change their group pension administration amid claims that changes to policies deny IFAs fair remuneration and makes servicing their clients unprofitable.

One IFA claims the slashed commission under Friends Provident&#39s admin approach to incremental policies threatens to put her out of business while another adviser claims Standard Life&#39s admin system for GPP leavers wastes precious resources.

Larch Financial Services IFA Beata Chelkowska says Friends has seen commission cut by up to 72.5 per cent on incremental policies.

She claims that because regular-premium GPP schemes with Friends accounts for 95 per cent of her total business, the earnings drop could put her out of business.

Bruce & Partners Harpenden partner Adam Bell advises a 200-member Standard Life GPP for a computer firm with a high turnover of staff.

He says Standard&#39s admin system, which demands that GPP scheme members leaving their employer are issued with new schemes, is not up to scratch as most rival offices simply issue the policies with new numbers.

Bell says: “Setting up new schemes wastes time and resources, which we do not get paid for. Also, the new life cover premiums are under the postApril 6 regime, meaning that waiver of premium and life cover are not offered on the old basis.”

Standard Life assistant general manager (marketing) Graham Storrie says: “Changing the need to establish new policies is a top priority as part of our phase two stakeholder business development. We appreciate it is not currently as straightforward as we want it be.”

Friends Provident was not available for comment.


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